Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — IPO Roadshow (November 2019)
26 slides from Global Ship Lease Inc New's IPO roadshow presentation, Nov 13, 2019
Slide 1: Senior Unsecured Notes Offering November 2019
Senior Unsecured Notes Offering November 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease’s current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease’s expectations, beliefs, plans, objectives, i
Slide 3: Disclaimer
Disclaimer Global Ship Lease has filed a registration statement (including a prospectus) and a preliminary prospectus supplement with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospe
Slide 4: Transaction Summary
Transaction Summary Issuer Global Ship Lease, Inc. (the “Company”) Security Senior Unsecured Notes Proposed Ticker / Exchange “GSLD” / NYSE Proposed Offering Size $25,000,000 (1) Notes Offered 1,000,000 (1) Overallotment Option 15% Principal Amount Per Note $25.00 Coupon 8.00% area (1) Maturity The
Slide 5: Credit Metrics
Credit Metrics Pro Forma Credit Statistics GSL Pro Forma Equity Pro Forma Notes Pro Forma ($ in millions) As of 9/30/19 Adjustments(2) Adjustments(3) Total (2)(3) Total Cash(1) $ 97.8 50.7—$ 148.5 Bank debt $ 517.2 — $ 517.2 Secured term loan 24.8 — 24.8 9.875% notes due 2022 340.0—(22.5) 317.5 New
Slide 6: Company Overview
Company Overview =
Slide 7: Leading Containership Lessor, Transformed in Last 12 Months
Leading Containership Lessor, Transformed in Last 12 Months NYSE-Listed Containership Owner & Lessor 43 containerships of 2,207 – 11,040 TEU, Fleet Focused on which can service majority of global Mid-Size & tradelanes Smaller Tonnage Well-specified ships, including latest generation, high-reefer, ec
Slide 8: Our Strengths
Our Strengths Leasing model with strong contract cover, providing forward visibility on cash flows $778 million of contracted revenues, with average 2.6 years forward cover 88% proforma Adjusted EBITDA cover for 2020; 68% for 2021 High-quality asset base, focused on liquid segments with compelling s
Slide 9: Our Business Model—Leasing v. Shipping
Our Business Model—Leasing v. Shipping Role of Containership Lessors Own and manage vessels which are leased to liner companies under long-term and short-term charters Responsible for maintenance, crewing, lubricants, insurance and daily technical operations No fuel cost or direct exposure to freigh
Slide 10: Strong Contract Cover: Locking in Upside, Protecting Downside
Strong Contract Cover: Locking in Upside, Protecting Downside; More Upside Potential Contracted revenue of $778 million and 2.6 Years TEU-Weighted Forward Cover 2019 2020 2021 2022 Vessel TEU Built Charter Agreed Charterer (Lessee) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q GSL Keta 2,207 2003
Slide 11: Strengthening Credit Profile & Flexibility: Refinancing and Equity Raise
Strengthening Credit Profile & Flexibility: Successful Refinancing and Equity Capital Raise Opportunistically refinanced $268.0 million of debt Maturities extended from 2020 to 2024 Costs reduced from L + 3.24% to L + 3.00% Released three 5,900 TEU ships – which are now unencumbered, increasing fina
Slide 12: Industry Update
Industry Update =
Slide 13: Industry Fundamentals
Industry Fundamentals Containerized trade has grown every year (except 2009) since the industry’s inception in the mid-1950s Supply is tightening: 5.7x reduction in orderbook-to-fleet ratio, 2007 through 9M2019 Near-term negative sentiment (trade tensions) helpful to longer-term fundamentals: more s
Slide 14: Non-Mainlane & Intra-Regional Trades Driving Demand Growth
Non-Mainlane & Intra-Regional Trades Driving Demand Growth Composition of Global Containerized Trade in 2018¹ Intra-Regional (excl. Intra-Asia) Total: 208 million TEU 7.3% Intra-Asia Non-Mainlane East-West 31.6% 18.7% North-South 15.4% Asia-Europe 11.0% Transatlantic 3.5% Transpacific 12.5% (6.7% Ch
Slide 15: Mid-Size & Smaller Ships Core to Most Tradelanes
Mid-Size & Smaller Ships (Sub-10,000 TEU) Core to Most Tradelanes Global Fleet Composition¹ >10,000 TEU 7,500 – 9,999 TEU Sub-2,000 TEU 5,100 – 7,499 TEU 4,000 – 5,099 TEU 2,000 – 2,999 TEU 3,000 – 3,999 TEU GSL Focus â—¼ Mid-size and smaller vessels â—¼ Core to most trade lanes â—¼ Flexible deploym
Slide 16: Supply-Side Dynamics Compelling for Mid-Size & Smaller Ships
Supply-Side Dynamics Compelling for Mid-Size & Smaller Ships Idle Fleet Capacity Limited¹ 12,000 + TEU Idle fleet end- 1.8 7,600-11,999 TEU 9M2019: 3.2%² 16.0% 5,200-7,599 TEU 3,900-5,200 TEU 14.0% 1.5 Line) 2,900-3,899 TEU millions) 12.0% 1,300-2,899 TEU 1.2 (Red TEU sub-1,300 TEU 10.0% ( 0.9 8.0%
Slide 17: Favorable Fundamentals are Pushing Up Earnings; IMO 2020 Another Boost
Favorable Fundamentals are Pushing Up Earnings; IMO 2020 Another Boost Asset Values & Spot Market Charter Rates Since 2000¹ 300 Newbuild Price Index 2000) TC Rate Index—250 Jan Second Hand Price Index Since 200 Average Since Jan-2000 Average 150 = (100 100 Index 50 0 2000 2001 2002 2003 2004 2005 20
Slide 18: Why Invest?
Why Invest? Strong contract cover with diversified client base of leading container shipping lines $778 million of contracted revenues, with average 2.6 years forward cover 88% proforma Adjusted EBITDA cover for 2020; 68% for 2021 High-quality, in-demand assets in under-supplied fleet segments High-
Slide 19: Appendix
Appendix
Slide 20: Appendix: Consolidated Balance Sheet
Appendix: Consolidated Balance Sheet as at September 30, 2019 (unaudited) GSL Consolidated Balance Sheets (expressed in thousands of U.S dollars except share data) As of September 30, 2019 December 31, 2018 ASSETS CURRENT ASSETS Cash and cash equivalents $ 86,697 $ 82,059 Restricted cash 5,355 2,186
Slide 21: Appendix: Consolidated Statement of Income Q3 & 9M2019
Appendix: Consolidated Statement of Income Q3 & 9M2019 (unaudited) GSL Consolidated Statements of Income (expressed in thousands of U.S dollars except share data) Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 OPERATING REVENUES Time charter revenue $ 25,538 $ 4
Slide 22: Appendix: Consolidated Cash Flow Statement Q3 & 9M2019
Appendix: Consolidated Cash Flow Statement Q3 & 9M2019 (unaudited) Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Cash flows from operating activities: Net Income $ 10,714 $ 4,630 $ 31,095 $ 14,372 Adjustments to reconcile net income to net cash provided by oper
Slide 23: Appendix: Overview of GSL Debt
Appendix: Overview of GSL Debt as at September 30, 2019 Outstanding Balance as Balloon Installment Collateralized Vessel of 30 September Interest Repayment 1 Maturity (excl. cash sweep) ($m) 2019($m) Combined annual amortization of $40m Citi Super Senior loan $24.80 3.25%+L—31-10-20 in 2019 and 2020
Slide 24: Appendix: Adjusted EBITDA Reconciliation
Appendix: Adjusted EBITDA Reconciliation Nine Annualized months nine months ended ended September 30, September 30, 2019 2019 Net income available to Common Shareholders 28.8 38.4 Adjust: Depreciation and amortization 32.9 43.8 Interest income (1.2) (1.6) Interest expense 56.5 75.3 Income tax (0) (0
Slide 25: Appendix: Complementary Leadership with Extensive Shipping and Capital Markets Experience
Appendix: Complementary Leadership with Extensive Shipping and Capital Markets Experience George Youroukos Founded Technomar in 1994 and ConChart in 2010 Executive Chairman Established Poseidon Containers in 2010 Over 200 secondhand and newbuild transactions Highly reputable technical and commercial
Slide 26: Appendix: Diverse Ownership Structure, Expert Board of Directors and Strong Sponsorship
Appendix: Diverse Ownership Structure, Expert Board of Directors and Strong Sponsorship Board of Directors George Youroukos Executive Chairman Poseidon Containers, Technomar, ConChart Henry Mannix III Director Kelso & Co. Philippe Lemonnier Director since 2017 CMA CGM Michael Gross Director since 20